How Indian Students Can Apply for an Education Loan While Staying Abroad

With the speed of globalisation, pursuing Education in international universities has become a dream for many Indian students. However, the financial burden associated with it could be overwhelming. That is where Education Loans come in to help many students financially.

Applying for Education Loans is accessible to students residing in India, but what if the student is living abroad and still wants to apply to Indian lenders? Whether the student is living in India or abroad, they can still apply for Loans from Indian Lenders. In this blog, we will discover the process of how Indians can apply for an Education Loan from abroad.

Can I get an Education Loan while staying abroad?

Yes, a student who is staying abroad can also get Education Loans from Indian Lenders. Many lenders, such as public banks, private banks, and NBFCs, offer Education Loans to Indian students while staying abroad. These loans can cover expenses such as tuition fees, accommodation, flight charges, etc.

Students can get both secured and unsecured Education Loans while staying abroad. Unlike students who are living in India, apart from standard documents, these students have to submit a few additional documents to be eligible for the Loan.

Eligibility Criteria to Get an Education Loan for Students Living Abroad

Below is the eligibility criterion required to get an Education Loan for students who are staying abroad.

• Citizenship: The student who is applying for an education loan must be an Indian citizen.
• Provide a Power of Attorney: Applicants have to submit the power of attorney to someone with whom the relationship can be proven. Lenders suggest giving the power of attorney to either parents, siblings, spouse, or parents-in-law who are living in India.
• Co-Applicant: Education Loans typically require a Co-applicant who shares the responsibility of repaying the Loan. The co-applicant also must be an Indian citizen.
• Admission Status: The student must secure admission from a recognised university.
• Academic Background: The student is required to have a good academic background in their previous academics. A minimum of 50% score in their previous academic records.
• Collateral: If the student is going for a secured education loan, it is required to pledge collateral that matches the Loan amount. Adding collateral also makes the student profile strong.
• Age: The applicant's age must be between 16-35 to be eligible for Education Loans.

List of Documents to Apply for an Education Loan from Abroad

Below is the list of documents required to get an Education Loan for students who are staying abroad.

KYC Documents:

• Applicant KYC Documents
  • Photo Proof (Aadhaar card, Driving license, Voter ID, etc.)
  • PAN Card.
  • Passport.
• Co-Applicant’s KYC Documents
  • Photo Proof (Aadhaar card, Driving license, Voter ID, etc.)
  • PAN Card.

Admission letter: An admission letter from a recognised university is proof of acceptance from the university.

Academic Documents: The student must produce all the necessary documents that demonstrate their academic track record, such as 10th, 12th, and undergraduate.

Test Score: If the student has given any test such as GRE, TOEFL, IELTS, CAT, etc...score card of the respective tests.

Collateral Documents: If the student is opting for secured loans, the respective collateral documents have to be submitted as requested by the lender.

Co-Applicant Documents: Students have to submit all the income proof documents(for unsecured) of the co-applicant required by the lender.

If the Co-applicant is an NRI: In some cases, if the co-applicant is an NRI, then the following documents have to be submitted.

• NRI account details
• Remittance of 60k INR per month into the NRI account.
• Passport to check NRI status
• Abroad address proof
• Submit power of attorney to either parents, parents-in-law, spouse, siblings, or children.

Apart from these, students may be required to produce additional documents as requested by the lender. This may vary from lender to lender and from profile to profile of the student.

How Indian students can apply for Education Loans from Abroad

The following are the steps to follow to apply for an Education Loan.

• Research: Proper research can help students find the right loan option for them.  Many lenders, such as public banks, private banks, and NBFCs, are offering Education Loans.
• Choose the Right Lender: After thorough research, choose the lender that matches your loan requirement. Compare the interest rates, repayment terms before opting for a lender.
• Apply for Education Loans with Documents: After finding a lender that matches your requirements, apply for the education loan with the required documents.
• Loan Processing and Verification: Lenders then verify the applicant's eligibility and creditworthiness and process the loan.
• Loan Approval: After a thorough verification of the documents provided by the applicant and the co-applicant, the lender approves the loan.
• Loan Disbursement: After the loan is approved, the lender disburses the amount to the university directly or to the student's account.
• Moratorium period: After the loan is disbursed, students get a moratorium period. This period is also called the repayment holiday. Most Education Loans come with a moratorium period, which is from 6 months to 1 year after the completion of the course. Students get exempted from repaying the loan during this period. However, some lenders charge simple interest during this period.

How Applying Through WeMakeScholars is a Game-Changer

• WeMakeScholars is a Government-backed Education start-up, supported by the Ministry of IT, Government of  India. Our motive is to offer unbiased Education Loans to students who are planning to study abroad. The first benefit for students is, we do not charge any service charges, as this initiative comes under the Digital India campaign. Hence, it's free of cost.
• We have partnered with 14 plus Government banks, private banks, and NBFCs. Hence, we can help students choose the right Education Loan based on the profile of the student.
• We work across India digitally; therefore, students from across India and abroad can access the services.
• Students need not visit banks multiple times with different documents. Our financial officers are always a call away to make the Loan process hassle-free.

The right guidance could be a game-changer in applying for Education Loans. At WeMakeScholars, our experienced financial officer can guide you throughout the application process and help in choose the right Education Loan. Request a call back and get expert guidance.

Conclusion

In this blog, we have covered how a student can apply for an education loan in India from abroad. We have also explored the eligibility criteria and documentation of the same. A clear step-by-step process of education loan application is also discussed above. However, proper guidance can enhance the chances of getting an education loan. Reach out to us to get expert advice.